Compare High Interest Savings Accounts
Savings accounts are a great way to keep your money safe, as well as earn some interest on your savings account balance. High interest savings accounts, also known as high yield savings accounts, are savings accounts that provide interest rates that are higher than what you might find on an average savings account. There are different types of high interest savings accounts, with different banks requiring different minimum deposits and offering different interest rates. Sometimes, the interest rate you receive depends on how much you put on deposit. Online high interest savings accounts usually provide better interest rates than brick-and-mortar banks.
The table below will allow you to compare high interest savings accounts including in order to find the best online savings account for your needs.
High Interest Savings Accounts
While there are many savings accounts offered to consumers today, they don't all share the same characteristics. The majority of large US banks only offer a tiny amount of interest to savers, however you can shop around and find high yield savings accounts that give you a lot more for your money.
Some people who want their money to earn interest may consider getting a certificate of deposit, or CD. But even CDs often give very disappointing returns, unless you are able to buy one for hundreds of thousands of dollars. Accessibility is also a problem with a CD. In most cases, you will not be able to access your funds before the end of the CD's term. And if your bank allows you to get your funds out early, you will often be charged a penalty that will wipe out all of the interest you've earned so far.
If you want a place to put your savings in while retaining access to your funds when you need them, a high interest savings account is a much better option.
How Savings Accounts Work
Practically any bank or credit union will offer savings accounts to their clients. Some credit unions even require that you open a savings account when you become a member. Savings accounts are actually one of the most simple banking products to understand, but you will need to be mindful of a few special features that are associated with them.
Rates Vary – Savings account interest rates are usually variable, which means that they can be changed at any time without any prior notice. With some banks, the rates change on a daily basis. Therefore, the interest rate you get when you initially open the account may not stay the same after a few months or a year.
Fees May Apply – Compared to checking accounts, savings accounts usually have a very simple fee structure, but you should still be careful to review it in order to avoid surprises. The majority of savings accounts don't have any monthly service fees, but some may impose a fee if your account goes below a certain balance.
Transactions Could Be Limited – Banking laws allow you to withdraw or transfer out money 6 times out of your savings account each month. However, take note that if you make over 6 withdrawals per month, fees may apply.
How to Find the Best Savings Account Rates
The most effective way to find a high interest savings account is simply to look at what banks offer and compare their products. There are many tools available online which will help you find savings accounts from a variety of different financial institutions, such as online banks, credit unions or smaller, local banks. You can then compare the interest rates offered on the accounts, as well as check for other features that may be of interest to you, such as the ability to set up an automatic transfer from your checking account to your savings account, etc. Sometimes, you may also see ratings and reviews from customers of the bank. This will give you an idea whether that particular bank is one that you would want to give your business to.
There are also other banking products that can help you get a higher interest rate. Rewards savings accounts are offered by some banks and credit unions. Typically you would need to have a checking account with the bank and meet certain requirements, like making a certain number of debit card transactions in a month or having a direct deposit set up to your account. If the requirements are met, you will receive a higher rate on your savings account.
Another option offered by a few banks and credit unions is the special savings account. These accounts pay higher interest rates than a normal savings account. They are typically used by those who want to save for the holidays or towards a special goal.